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Nifty plunged 160 points to close at 24,413, while Sensex dropped 502 points, marking one of the sharpest declines in July.
FIIs pulled Rs. 4,999 crore from Indian equities, amplifying market weakness triggered by US tariffs up to 50% on key Indian exports.
Sectoral impact was sharp, with Adani Ports, Adani Enterprises, and textile stocks tumbling, while Hero MotoCorp and ICICI Bank provided slight support.
Indian stock market today opened on a cautious note. Sensex shed over 400 points during intraday trading. Nifty 50 Slumps Below 24,450 amid Trump tariff threats and as India-US Trade tensions intensify. At the time of writing, it was trading at 24,413.45, down 160.75 points or 0.65%. Meanwhile, the broader Sensex declined 502.16 points or 0.62% to settle at 80,041.83.
The market downturn was broad-based, with BSE SmallCap index experiencing selling pressure, falling 522.84 points or 1.00% to 51,705.16. The banking sector showed mixed performance as Nifty Bank index fell 290.95 points or 0.53% to 55,120.20. However, the IT sector displayed relative resilience compared to previous sessions. Nifty IT index declined marginally by 45.80 points or 0.13% to 34,380.45.
The primary catalyst behind today's market decline was US President Donald Trump's decision to impose an additional 25% tariff on Indian exports, bringing the total tariff rate to 50%. This measure was announced as a response to India's continued imports of Russian crude oil, significantly straining bilateral trade relations.
The textile and shrimp stocks bore the immediate brunt of this development. According to Moneycontrol data, Major textile manufacturers, including Gokaldas Exports, KPR Mill, Trident, and Welspun Living, witnessed declines ranging from 0.7% to 3%. Shrimp exporters were hit even harder, with Avanti Feeds plummeting 4% and Apex Frozen Foods dropping nearly 3% to Rs. 220.65.
US President Trump, while announcing the tariff increase, noted ‘productive talks’ with Russia regarding the Ukraine conflict. However, he remained uncertain whether the India tariff decision influenced these diplomatic developments.
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The ongoing earnings season provided mixed signals for market participants. Several companies reported their quarterly results, creating stock-specific volatility. Prism Johnson reported a narrowed Q1 net loss of Rs. 5.6 crore compared to Rs. 18.3 crore year-on-year. Hence, leading to a 3.94% surge in its stock price to Rs. 151.65.
Raymond Lifestyle showed improvement with losses narrowing to Rs. 19.8 crore versus Rs. 23.2 crore, while revenue jumped 17.2% to Rs. 1,430.4 crore. Aegis Logistics maintained stable profitability with Q1 net profit flat at Rs. 121 crore, though revenue grew 7% to Rs. 1,719 crore.
There have been many big corporate updates on August 7, 2025. LTIMindtree secured a significant Rs. 792 crore mandate from the Government of India's Central Board of Direct Taxes for the PAN 2.0 project transformation.
Cyient Semiconductors announced a strategic partnership with GlobalFoundries, though the stock declined 1.13%. TCS announced wage hikes for 80% of its workforce starting September 1. The news comes as the company plans to lay off 12,000 employees during the current financial year.
The JSW Cement IPO opened for subscription today, seeking to raise approximately Rs. 3,600 crore through a combination of fresh issue (Rs. 1,600 crore) and offer for sale (Rs. 2,000 crore). The offering represents one of the significant IPO launches in the current market environment.
Hero MotoCorp led the gainers with a 2.91% rise to Rs. 4,605.
JSW Steel gained 0.60% to Rs. 1,058.90
ITC showed modest gains of 0.27% to Rs. 413.10
HDFC Bank edged higher by 0.21% to Rs. 1,989.50
Adani Enterprises faced the steepest decline, falling 3.73% to Rs. 2,214.60.
Adani Ports dropped 3.56% to Rs. 1,318.40, marking its worst performance in 15 weeks.
Jio Financial Services declined 2.62% to Rs. 318 as Tata Motors fell 2.21% to Rs. 638.40.
Reliance Industries shed 1.62% to Rs. 1,370.20.
Foreign institutional investors (FIIs) continued their selling trend with net outflows of Rs. 4,999.10 crore on August 6, significantly higher than the previous day's outflow of Rs. 22.48 crore. However, domestic institutional investors (DIIs) provided strong support with substantial net inflows of Rs. 6,794.28 crore, helping cushion the market's decline.
Also Read: Stock Market Today: Nifty IT Crashes 430.75 Points, Wipro Falls 1.72%, Titan Gains 1.07%
Market analysts suggest that the current environment presents a complex mix of challenges and opportunities. The escalation in US-India trade tensions adds a new layer of uncertainty to an already volatile global trade environment. However, the strong support from domestic institutional investors indicates confidence in India's long-term growth prospects.
As the market navigates these challenging waters, investors are advised to maintain a cautious approach. Meanwhile, focusing on fundamentally strong companies with domestic exposure may also help.
1. Why did the Indian stock market fall today?
The Indian stock market declined sharply due to rising geopolitical tensions, particularly after US President Donald Trump imposed an additional 25% tariff on Indian exports. This led to a total tariff rate of 50% on key Indian goods like textiles and shrimp. Investor sentiment was further dampened by heavy selling from Foreign Institutional Investors (FIIs), who pulled out nearly Rs. 5,000 crore.
2. How much did the Nifty 50 and Sensex fall on August 7, 2025?
On August 7, 2025, the Nifty 50 dropped 160.75 points to 24,413.45, while the Sensex declined 502.16 points to 80,041.83. This marked one of the sharpest single-day drops in recent weeks, especially in response to international trade tensions.
3. Which sectors and stocks were most affected by the Trump tariffs?
The textile and shrimp export sectors were hit hardest. Stocks like Gokaldas Exports, KPR Mill, Trident, and Welspun Living declined up to 3%. Shrimp exporters such as Avanti Feeds and Apex Frozen Foods dropped by 4% and 3%, respectively. Among large caps, Adani Enterprises and Adani Ports led the losses.
4. What role did foreign investors (FIIs) and domestic investors (DIIs) play today?
FIIs were heavy sellers, recording net outflows of Rs. 4,999.10 crore, amplifying market weakness. On the other hand, DIIs stepped in to provide some support, with net inflows of Rs. 6,794.28 crore, which helped cushion the overall decline to some extent.
5. Is this market correction temporary or could it signal a longer downtrend?
Analysts are divided. While the correction is currently seen as a response to geopolitical triggers and external tariffs, prolonged trade tensions with the US could lead to further downside. However, strong DII support and positive domestic fundamentals suggest that any correction may be short-lived, provided there are no further escalations.
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